Interesting article about Oil

wanghong

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% [, L: D5 w) I$ l+ D8 |3 }8 ^; rBelow is an Interesting article I found, which says that.....Do not
  @0 Q# N/ G$ _, gexpect much from Crude Oil producers and future is not with the
+ ~: M6 z! y6 d9 g  Xcompanies producing Jet fuels but Biofuels. Also no wonder if some of
  H8 T1 [* |5 L8 O) \7 J- Ythese oil producer will go bankrupt or out of the business even if
0 h8 e% a: ^! o: v) \: Mcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
. ?$ _$ E; ]; q3 |  C9 Y/ ]months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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" s- D3 x' z# C. {! I! K* P" X; HThere are several reasons the price of oil is decreasing in the face
" Y5 h: Z4 g) L+ L5 M+ x4 w4 bof so much news. These reasons are:
5 U% t) t5 K- y* z: O  Q4 J. s9 v- n

1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
- b' s, d9 e9 b  Z1 ~) X! K5 fArabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
! o/ ~3 g' j# l, @7 z5 a. fThis is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
7 @7 s  Q9 m' v# O) q  kbeing used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
0 b) V* n8 s: P: Zfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


% E! _2 B3 ]/ |( E5. Virtually every restaurant in the US and all food processing plants
; v: q5 i- t- Q+ Qare now selling their used oil to bio-diesel producers. Every pork,
, r: m$ a! l+ j1 t" vcattle, turkey and chicken processing plant will soon sell their fat
% R5 o$ Z. ^$ V1 Zto bio-diesel producers. One pork processing plant in Oklahoma is
6 G! }% U) k2 s/ a# bproducing 30,000 gallons of bio-diesel per day from pork fat.
7 p) c4 r" e( t. d

6. There are 99 nuclear reactors in various stages of planning and
" Q# R. j( b% J7 x7 D8 V! L- N7 d. _construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.

: ]6 O, Y1 t4 X" |3 Y0 [
7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
, [1 R3 v" S& \, Swith new more fuel efficient equipment. Airlines and railway companies
( M' A* i1 O' uare experiencing 20% to 25% better fuel econony with the new
) g9 O3 g% v$ Uequipment.
9 @& b) C5 a& j- l. f  Q
0 a7 \* A! e; ]0 `
Airlines are flying airplanes with bio-fuel. They are finding the bio-
! ?$ o, d8 J7 a+ w' dfuel is cleaner and performs better than jet fuel.
3 ]* N  I7 V6 q+ A

$ \: k9 H) c8 k8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
( Y7 ]+ X- k, i6 Q4 T- p1 z3 Javailable at very little cost or risk. The gas is displacing crude
; d1 D- y: V' F" Zoil.
  c8 o9 s. L' V1 R. U" q0 ^
: w1 O: e5 S/ _; R/ V3 p
9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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, w4 |4 W0 {8 P1 `: P/ |, l' HEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
1 l& b2 r; ~( s- S/ v" _0 Yto control oil prices.


With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
4 l! J. N! s  i! u8 [0 M2 J+ sIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
. x1 ~" ]6 C) @. t

The above articles are from WSJ .............PUBLISHED ON 9TH JAN
6 x0 l4 \& V6 S+ g# [( i2009 ... FYI-Only